The Paint Shortage of 2022
It seems like everything is in short supply, including paint.
While COVID-19 disrupted supply chains worldwide, paint suppliers faced a massive surge in demand. Countless people undertook renovation projects while stuck at home, leading to a spike in demand for paint. In 2021, paint supply distributors experienced a 7.8% increase in sales, and the US paint manufacturing market size hit $31.7 billion in 2022.
However, the paint industry has struggled to keep up with this demand over the last few years due to a shortage of paint.
Why Is There a Paint Supply Shortage in 2022?
Perhaps the most significant factor behind the paint shortage of 2022 is supply chain issues and a lack of raw materials. Without certain materials like methyl ethyl ketone and methyl methacrylate, creating industrial paint components and enamels is difficult, if not impossible.
Then, Texas saw a cold snap in the winter of 2021. It burst America’s largest resin factory’s pipes, resulting in a three-month shutdown. This drastically extended delivery times to Europe and contributed to the paint supply shortage. While manufacturers have been searching for alternatives, it isn’t going well.
Floor marking paints are certified, so finding an alternative can be time consuming. Not only do missing components need to be replaced by a product with the same exact chemical characteristics, but the paints will then need to earn a new certification. This can take up to two years!
Another main contributor to the paint supply shortage is the rise in oil prices. High oil prices mean paint suppliers can’t afford to manufacture oil-based paints at the same volume they used to or sell them at their old prices.
What’s more, paint supply distributors have been severely impacted by the Russia-Ukraine war. After all, Russia and Ukraine are major sources of titanium dioxide. This key ingredient in industrial paints and coatings is bright and compatible with oil-borne, solvent-borne, and water-borne paints and coatings. So, it’s hardly surprising that it’s such a popular paint ingredient. In fact, titanium oxide can account for anywhere between 5% and 20% of the weight of one kilogram of paint.
However, titanium oxide is hard to come by these days, not to mention expensive, due to the conflict between Russia and Ukraine and sanctions on Russian imports. In 2016, one ton of titanium dioxide cost 2,100 euros. Titanium dioxide prices hit 2,650 euros in the first quarter of 2021 and 3,600 euros in April 2022. This has impacted the overall paint supply and placed strain on paint wholesale distributors.
What Does the Shortage of Paint Mean for Paint Wholesale Distributors & Construction Companies?
Paint suppliers may need to reduce their product offerings or offer alternatives until the paint shortage of 2022 ends. Plus, since titanium dioxide can account for up to 40% of the price of a paint formula, they will likely need to raise paint prices to cope with the titanium dioxide shortage if they haven’t already.
A shortage of paint at the distributor level means a lack of paint in construction. Painting new constructions is a top priority for companies, but they also need to handle painting renovations. They’ll be forced to shell out more for paint and raise the costs of construction projects. Construction companies may also need alternatives until the paint supply shortage ends. For example, some paint colors cost more than others. Reds, blacks, and deep colors may be more challenging to get a hold of. Since blue paint includes 50 to 60 components, it is especially difficult to come by.
When Will the Paint Shortage End?
No one knows precisely when the shortage of paint will end, but most people expect it will last until the fourth quarter of 2022 or into early 2023.
Finding paint wholesale distributors with the types and colors of paint needed may be difficult until the shortage ends. However, it doesn’t have to be. AMAST is a B2B marketplace for construction materials that can help you overcome the shortage and supply chain issues. You’ll be able to easily find the wholesale paint supplies you need from various paint distributors on AMAST.
Overcome the Shortage of Paint with AMAST’s Help
Between the supply chain disruptions, rising oil prices, the Russia-Ukraine war, and the titanium dioxide shortage, paint is in short supply. Prices are also rising, and construction companies are struggling to find the colors they need at reasonable costs.
Luckily, AMAST can help! We’re a B2B online marketplace store that can help connect you to quality paint suppliers. When you use AMAST, you can get your hands on paint on time—and within budget.
Request a demo today to see what AMAST can do for you.